Correlation Between Wiwynn Corp and Lotes
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Lotes at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wiwynn Corp and Lotes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Lotes Co, you can compare the effects of market volatilities on Wiwynn Corp and Lotes and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wiwynn Corp with a short position of Lotes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Lotes.
Diversification Opportunities for Wiwynn Corp and Lotes
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wiwynn and Lotes is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Lotes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotes and Wiwynn Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wiwynn Corp are associated (or correlated) with Lotes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotes has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Lotes go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Lotes
Assuming the 90 days trading horizon Wiwynn Corp is expected to under-perform the Lotes. In addition to that, Wiwynn Corp is 1.14 times more volatile than Lotes Co. It trades about -0.07 of its total potential returns per unit of risk. Lotes Co is currently generating about -0.06 per unit of volatility. If you would invest 169,500 in Lotes Co on December 4, 2024 and sell it today you would lose (6,500) from holding Lotes Co or give up 3.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Wiwynn Corp vs. Lotes Co
Performance |
Timeline |
Wiwynn Corp |
Lotes |
Wiwynn Corp and Lotes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wiwynn Corp and Lotes
The main advantage of trading using opposite Wiwynn Corp and Lotes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Lotes can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lotes will offset losses from the drop in Lotes' long position.Wiwynn Corp vs. Aspeed Technology | Wiwynn Corp vs. Unimicron Technology Corp | Wiwynn Corp vs. Asmedia Technology | Wiwynn Corp vs. Novatek Microelectronics Corp |
Lotes vs. Unimicron Technology Corp | Lotes vs. Alchip Technologies | Lotes vs. Nan Ya Printed | Lotes vs. Global Unichip Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |